French broadcast equipment and STB maker Technicolor has received a binding offer from venture capital company Francisco Partners for the acquisition of its Grass Valley Broadcast business. Early this year, Technicolor reorganised Grass Valley into three separate activities, broadcast, transmission and head-end. The broadcast business has 1,457 employees in 23 countries and made a EUR 52 million loss on EUR 272 million of revenues last year. It provides professional equipment and related services to broadcasters and teleproduction facilities. The scope of the offer includes all of its employees and assets, including patents and a licence agreement. Francisco will issue a six-year, USD 80 million promissory note bearing 5 percent of annual interest. This amount represents the USD 100 million value of the business minus the present value of transferred employee retirement liabilities. Additionally, Technicolor will transfer EUR 20 million of cash for ongoing operations. The group said it expected to record a loss for the disposal in its full-year results. The transaction is expected to close by the end of the year.
